**Oil Price Surge Amid Declining US Gasoline Stocks**
Oil prices saw a slight increase on Thursday as a significant drop in US gasoline inventories raised market expectations. Concerns, however, linger about the potential implications of escalating trade tariffs on global economic growth.
Brent crude futures advanced by nine cents, reaching $71.04 per barrel, while US West Texas Intermediate crude futures experienced a modest rise, gaining two cents to $67.71 per barrel as of 03:10 GMT.
Data released by the US Energy Information Administration (EIA) indicated an increase in US crude stocks by 1.4 million barrels during the most recent week. Conversely, gasoline stocks fell sharply by 5.7 million barrels, alongside a greater-than-expected decline in distillate inventories.
Furthermore, the EIA reported that crude reserves in the strategic petroleum reserves of the United States have climbed to their highest levels since 2022.
Hiroyuki Kikokawa, Chief Strategist at Nissan Securities and Investment, noted, “The significant reduction in gasoline inventories has sparked expectations for a rise in seasonal demand in the spring. However, concerns regarding the global economic repercussions of ongoing trade tariff disputes are weighing heavily on the market.” He further commented, “The simultaneous presence of strong and weak market factors has complicated the ability to discern a clear directional trend.”
In related news, the US administration has indicated potential escalations in the trade conflict, with President Trump threatening to impose additional tariffs on European Union imports. This announcement follows statements from major trading partners of the United States indicating that they would retaliate against the trade barriers already implemented.
Trump’s aggressive stance on tariffs has led to deteriorating confidence among investors, consumers, and businesses, heightening recession fears within the US economy.
Meanwhile, OPEC’s monthly report revealed that OPEC+, comprising OPEC members, Russia, and other allied producers, increased production in February by 363,000 barrels per day, bringing total output to 41.01 million barrels per day. The group maintained its outlook for robust growth in global oil demand by 2025.